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In this interview with Harvard Business School professor Linda Hill and HBR senior editor Suzy Wetlaufer, Franco Bernabe discusses the six-year period in which he transformed his organization from an unprofitable, politically-controlled collection of operating companies into a lean, competitive, global enterprise. Few CEOs will face crises as disruptive and dramatic as those encountered--and overcome--by Bernabe. In 1992, when Bernabe was appointed CEO of Eni, Italy's large, energy-focused industrial group, his announced goal was to transform the company from a political quagmire into a clean, market-driven business ready for its first public offering. The resistance to his plans was intense, but that wasn't the worst of it. Soon after he took power, an investigation known as Mani Pulite--Clean Hands--led to the arrest of much of Eni's senior management team, including the company's chairman. One of those senior managers even made the false claim--based on hearsay--that Bernabe himself had taken a huge bribe. Simply put, Bernabe's story is not just that of a CEO steering a massive strategic reinvention. It is a story of leadership, and an unlikely one at that. In this interview, it becomes clear how Bernabe survived his tumultuous first months as CEO and then led the company's transformation. To begin with, he was unique in having both an encyclopedic knowledge of Eni's operations and a view of the company's future from 30,000 feet. But perhaps more than anything, Bernabe's power to lead has come from within. He follows, he says, an inner compass pointed toward humanity and justice. In difficult times, Bernabe seeks consultation from others. But ultimately, he makes all important decisions alone so as not to be buffeted by the needs, emotions, or agendas of others. Such solitude, he believes, is one of the burdens--and necessities--of leadership.

Describes Franco Bernabe's ascent to leadership at ENI, Italy's national oil and gas company. Illustrates Bernabe's early career experiences in academia, as the chief economist at Fiat. Then describes his arrival at ENI during the early 1980s, where he became first the assistant to the CEO and then director of strategic planning. In 1992, Bernabe was unexpectedly appointed by the Italian government to head the company's privatization process. Bernabe was only 42 years old at the time. Immediately after his appointment, Bernabe dealt with many crises, including Italy's Clean Hands corruption scandals, which implicated his entire executive team. This case focuses on his first year as CEO.

Supplements the (A) case.

Supplements the (A) case.

An MBA graduate, 10 years out, reflects on his career path. Randy Haykin is currently running his own venture catalyst organization in the Silicon Valley.

Addresses how to build effective one-on-one work relationships. Spells out the importance of analyzing your network and understanding on whom you are dependent. Also provides some criteria for assessing the quality of your relationships. Finally, it discusses how to manage conflict based on the Senge Model of advocacy, inquiry, and mental models, all of which encourage people to uncover their assumptions.

Focuses on InterSoft of Argentina, a growing software company in Argentina. In 1993, InterSoft acquires a Russian software company and Emilo Lopez, the vice president and director of InterSoft's Systems Software Lab, must manage a creative, cross-cultural, "virtual" team. This case illustrates InterSoft's origins and highlights the relationship between the founding partners, Lopez and Felix Racca.

Focuses on InterSoft of Argentina, a growing software company in Argentina. In 1993, InterSoft acquires a Russian software company and Emilo Lopez, the vice president and director of InterSoft's Systems Software Lab, must manage a creative, cross-cultural, "virtual" team. This case reveals a quarrel that arises over e-mail between an Argentine programmer and a Russian programmer. Lopez, as the manager of the development team, must decide how to handle the situation. Since the exchanges between these programmers were preserved in e-mail files, this case provides a unique opportunity to analyze a conflict situation as it escalates.

Supplements the (A) and (B) cases. Designed to be handed out at the end of class.

Illustrates: 1) the impact of a manager's leadership style on corporate culture, direction, and performance; 2) the concept of fit between leadership style and the requirements of situations in which managers find themselves; and 3) the need for managers to adapt their styles as situational requirements change. More specifically, it provides an opportunity to look at some of the special issues of: 1) being a black woman manager; 2) the advantages and disadvantages associated with a "family corporate culture"; and 3) managing in a creative business. Does not substantially differ from the (A) case, but it does emphasize more strongly Suzanne de Passe's success. Students have misunderstood the standards of the entertainment industry, and this case makes Motown's accomplishments clearer.

Gives the conclusion of the (C) and (D) cases.

Pratt & Whitney is a leader in the development and manufacturing of gas turbine engines for commercial and military aircraft. Economic conditions for the airline and defense industries are forcing the airplane engine builders to restructure. Ed Northern, a new general manager of one of Pratt & Whitney's largest plants, is determined to transform the North Haven plant into a world-class manufacturing organization.

As part of the restructuring effort underway at the Pratt & Whitney North Haven plant, Ed Northern and a group of Japanese consultants are transforming the manufacturing process from a batch process to a single-piece flow, and are organizing the machines and workers in product cells. Vane Cell 6 is the first cell to be created at North Haven. Business Unit Manager Garrett Mikits is faced with a challenge as the creation of Vane Cell 6 nears completion. A new order, which represents a large volume increase, challenges Mikita and his workers to find a way to increase production.

As part of the Pratt & Whitney North Haven restructuring effort, Ed Northern and his business unit managers are encouraging workers to make decisions and take an active role in improving the manufacturing process at North Haven. Business Unit Manager Tom Hutton has empowered a group of hourly workers to purchase grit blast equipment for two cells. The capital purchase decision runs into some problems when the two cells, the vapor coat and pack coat cells, fail to reach an agreement about which equipment to purchase.

Because of conflicts between the vapor coat and pack coat cells over the decision to purchase new grit blast equipment, Business Unit Manager Tom Hutton has decided to form a second capital purchase team that will represent the pack coat cell. Meanwhile, the first capital purchase team has decided to purchase MacCormick equipment, traditionally considered less reliable than other equipment. Hutton is having misgivings about his decision to empower workers to purchase equipment, and wonders whether he should approve the purchase.

Encourages managers to think critically about how to prepare for and give a performance appraisal interview. Presents frameworks for evaluating subordinates' work and suggestions for coaching them.

Presents the background information to watching the video reenactment of the Cranfield-Kearney Performance Appraisal Interview.

Presents a model for understanding the behavior and evolution of primary, stable work groups over time. The model describes contextual factors, design factors, and emergent culture as determinants of group behavior and performance. Describes emergent behavior, norms, roles, and rituals as aspects of group life. A rewritten version of an earlier note.

Describes a conflict between the values and norms of a segment of an internal social system and those of management and the wider culture. Includes decision opportunity. A rewritten version of an earlier case.

Spreadsheet supplement for case 496018.